Main Contact: Drew C. LaBarbera, RMLO
NMLS: 260569
2104 Green Hill Drive
McKinney, TX 75070
Phone: 903-814-2344 Fax: 214-237-4070
Español: 214-683-5023 Email: drew@planwealth.net

Main Contact: Drew C. LaBarbera, RMLO
NMLS: 260569
2104 Green Hill Drive
McKinney, TX 75070
Phone: 903-814-2344 Fax: 214-237-4070
Español: 214-683-5023 Email: drew@planwealth.net


Thursday, January 20, 2022
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Market Commentary

Updated on January 20, 2022 10:04:29 AM EST

Yesterday’s 20-year Treasury Bond auction drew a stronger demand from investors than was expected. The benchmarks we use to gauge interest showed a decent appetite for the securities. Bonds had already improved from morning levels before the results were posted at 1:00 PM, but news of the strong demand may have helped keep those gains.

The first of this morning’s two economic reports was last week’s unemployment update that showed 286,000 new claims for benefits were filed. This was an increase from the previous week, higher than expectations of 211,000 and the highest weekly number in three months. We can label this as good news for bonds and mortgage rates since it is a sign of a weakening employment sector. However, because it is just a weekly snapshot, it doesn’t carry much weight in the markets unless it reveals a significant surprise.

Also posted this morning was Decembers Existing Home Sales from the National Association of Realtors. They announced a 4.6% decline in sales of existing homes last month. This was also weaker than expected and shows the housing sector was softer than many had thought. Accordingly we can consider the data favorable for mortgage rates.

The final report of the week will be Decembers Leading Economic Indicators (LEI) at 10:00 AM ET tomorrow. The Conference Board compiles the data and releases this report monthly. It attempts to predict economic activity over the next several months, but since it is posted by a non-governmental agency, it is not considered to be of high importance to the financial and mortgage markets. Tomorrows release is expected to reveal a 0.7% rise, meaning the indicators are predicting growth in economic activity over the next several months. As long as we dont see a noticeable increase, I dont think this data will have much of an impact on mortgage pricing either.

 ©Mortgage Commentary 2022

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Drew LaBarbera, RMLO DBA Planwealth Financial Services
NMLS: 260569 | Company NMLS: 353562

Drew LaBarbera, RMLO DBA Planwealth Financial Services
NMLS: 260569 | Company NMLS: 353562